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Wednesday, August 26, 2009

Hire Out Or Do it Yourself? Deciding How to Manage a Rental Property

Looking to rent out your property? Wondering whether you have the time or energy to be a good landlord? Or, conversely, should you hire a property management company to do the grunt work for you? To answer these questions for yourself, here is what you need to know:

1. What will you, as the landlord, have to do? As a landlord you will have to collect rent each month (which can be a hairy job, considering some of the renters out there!), address renter concerns, go through routine maintenance checks for property preservation, and of course, make repairs or replace broken items in a timely manner. This can be a simple or complex job depending on the situation, number of properties, location, and the shape your properties are in.

2. What can a property management company do for you? Of course, all of the responsibilities that you would normally handle, would fall under the watchful eye of the property management company. A few things to think about: a property management company will constitute an added cost. If you are merely looking to collect rent, and the property you are renting out is fairly new (won't need a lot of repairs), then having a management company take the reins might be overkill. However, if your property is, say, in another state, that would be a surefire reason to hire someone else to do the job! Another reason to hire out would be if you are renting out more than one home or apartment. If you are the landlord for a variety of locations, you could find yourself spending more time taking care of your tenants than you do at your full-time job!

Making time to be a good landlord or hiring out can be difficult options to weigh. When in doubt, go with your gut. You can always change your mind when you see the situation is in need of a change.


Billings_Farnsworth

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